CVS - Is CVS Health Stock a Buy?
2024-06-30 06:35:00 ET
CVS Health (NYSE: CVS) is a top pharmacy retailer in the U.S., and over the years, it has been expanding its operations to go deeper into healthcare. The stock also provides investors with a dividend that yields 4.3%, which is more than double the S&P 500 average of 1.3%. Combine that with the stock trading at a fairly low 11 times earnings, and it looks like an investment that looks to be too good to be true.
But despite all of this, investors aren't rushing out to buy the stock. Year to date, CVS' stock has crashed 22%. What's behind all the bearishness? Is the stock in trouble, or is this just a great buying opportunity?
On May 1, CVS released its latest earnings numbers, and that's when the wheels came off for the stock. It's one thing to miss expectations, but to drastically slash guidance is even more alarming to investors. When that happens, a sell-off often ensues. CVS' adjusted earnings per share came in at $1.31 for the first three months of the year, which was well below analyst expectations of $1.69. But what was even more troubling was its guidance.
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Is CVS Health Stock a Buy?